Why does TSP require selling everything when moving shares.

[clifbeliev]

Wish I could designate which shares I move in TSP. Example: I was 80%C and 20%G invested yet when transferring $10,000 out, it came out of both. I could not request the money come solely from G. This makes me wait until I am 100%G to transfer money. One can never ensure which day the funds will be transferred out. Another Example: I am 100%G in my real tsp and ready to invest again. I am Thinking on returning to C Fund. Yet I would love to buy some S in smaller amount. If I buy both, it is not always advantageous to sell both at the same time. Yet TSP will have me buy and sell all at the same time, even if I want to retain one of them (S or C) I could be losing/gaining on one and wanting to retain it.

[Scarfinger]

The why is called Pro Rata. It’s a proportional withdrawal system and is how the TSP works. Your 10,000 withdraw would be proportional 80% C and 20% G. It’s another reason that would support moving some or all your money to an IRA after retirement.

[omoade]

<<It’s another reason that would support moving some or all your money to an IRA after retirement.>>

Even then, the "Pro Rata" would still apply each time you move to an IRA.

[Scarfinger]

<<It’s another reason that would support moving some or all your money to an IRA after retirement.>>

Even then, the "Pro Rata" would still apply each time you move to an IRA.

True. For example a back door ROTH conversion.

I think the preferred withdrawal would be from the "G" fund only in a down market and NOT proportional through all funds as it currently is. I read that the TSP is making changes so that we will be able to withdrawal from either our Tradition and or our Roth accounts which would be nice. But (I may be wrong) the withdrawal would still be proportional to the allocation percentages.

I am getting confused myself. Pro-Rata vs proportional? I think Pro-Rat has to do more with taxes. I believe what we would want is the ability to withdrawal from one fund like the "G" fund in a down market vs proportional a crossed all % allocations.

My Main reason to take at least my ROTH out of the TSP is that I won't be required to take RMD's from it.

[clifbeliev]

Thanks for the term, "Proportional". Yes, just pulling out funds to add to a back door Roth outside TSP.

[wingchaser]

It’s another reason that would support moving some or all your money to an IRA after retirement.

Or moving some, if not all of it after 59.5…

I’ve got about a 50/50 split between my TSP & my Rollover IRA (Fidelity), which TOMANYIRON would concede, is a rather conservative approach.

Best of Luck (everyone) in all you choose to endeavor!!!